German Jobs Data Add to Hopes for Upturn

By

Brian Blackstone And

Todd Buell

Updated Jan. 3, 2013 3:44 p.m. ET

FRANKFURT—Unemployment stabilized at low levels in Germany in December and fell sharply in Spain, boosting hopes for a modest euro-zone recovery in 2013 after more than a year of stagnation and contraction across the 17-member currency bloc.

Analysts cautioned that more positive reports will be needed before declaring a turnaround in the economy, which has failed to expand in the euro zone since the third quarter of 2011. December...